More

    Home delivery declines in convenience amid financial squeeze

    Photo: iStock

    Restricted budgets and decreased anxiety around coronavirus have led to a decline in convenience delivery usage from 2021 to 2022, a new study has found.

    The Lumina Intelligence’s Convenience Delivery report has also found that price has become increasingly important to consumers, with a 7 per cent increase in its importance year-over-year.

    However, the report highlights potential opportunities for convenience delivery providers. Seasonality is a key driver for convenience delivery, with colder weather expected to prompt an increase in usage. Spend per item saw a peak at Easter 2022, displaying additional opportunities around seasonality.

    Overall, younger shoppers aged 18-24 are the key group to target, as they over-trade by 13 per cent compared to the total convenience market.

    The report found that shoppers are most likely to use convenience delivery for ‘top up, meal occasions’, ‘treats’, ‘entertainment’, and ‘gifting’ missions.

    Furthermore, shoppers who purchase in convenience via delivery spend the most on entertaining, with the largest over-trade for ‘top up’ and ‘treat’ missions. These missions are key to focus on to drive higher margins.

    In terms of operator’s performance, Co-op is the leading retailer in the convenience delivery market, accounting for 39 per cent of occasions. The continued expansion of Co-op’s delivery channel and partnerships with Deliveroo and Just Eat have led to its success throughout 2022.

    Such collaborations between operators will be critical to boosting delivery volumes and opening new routes to the market, offering benefits such as access to a larger customer base and better service levels and enhanced shopper satisfaction, the report noted.

    Latest

    PML launches new digital trade platform for IQOS retailers

    Philip Morris Limited (PML) has unveiled Heatwave Open, a digital trade...

    TWC Group is new James Hall & Co. Ltd data partner

    TWC Group has been announced as the new data...

    Rekorderlig unveils new Peach-Raspberry flavour for 2024

    Rekorderlig is expanding its range with the launch of...

    Historic charity, NewstrAid, announces 185th birthday raffle

    Industry charity, NewstrAid, has announced it will be holding...

    Don't miss

    PML launches new digital trade platform for IQOS retailers

    Philip Morris Limited (PML) has unveiled Heatwave Open, a digital trade...

    TWC Group is new James Hall & Co. Ltd data partner

    TWC Group has been announced as the new data...

    Rekorderlig unveils new Peach-Raspberry flavour for 2024

    Rekorderlig is expanding its range with the launch of...

    Historic charity, NewstrAid, announces 185th birthday raffle

    Industry charity, NewstrAid, has announced it will be holding...

    £10,000 worth of illegal vapes, tobacco seized in South Tyneside

    Around £10,000 worth of illegal vapes and tobacco has...

    PML launches new digital trade platform for IQOS retailers

    Philip Morris Limited (PML) has unveiled Heatwave Open, a digital trade engagement platform designed to bolster online support for convenience retailers stocking its heated tobacco device IQOS. The...

    TWC Group is new James Hall & Co. Ltd data partner

    TWC Group has been announced as the new data partner of SPAR North of England wholesaler James Hall & Co. Ltd. Through TWC, suppliers will...

    Historic charity, NewstrAid, announces 185th birthday raffle

    Industry charity, NewstrAid, has announced it will be holding a special 185th birthday raffle as part of its anniversary celebrations this summer. Everyone from the...